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Col. John M. Francisco, the sutler at Fort Garland, and his business partner, Henry Daigre, purchased 48,000 acres of land in Cuchara Valley in 1862. The land was part of the Vigil land grant. They established a settlement for farmers and ranchers, with Francisco Fort as the commercial center.[8] The 100-foot-square building was constructed with 2-foot thick adobe walls, interior rooms, that opened up to a central plaza. It was built with a flat roof with gun ports along the parapets. In 1863, the fort was attacked by a bank of Ute people. Men got on the roof to defend the fort, and a volunteer rode to Fort Lyon. The Utes retreated, though, before the troops arrived.[8]

In 1871, the settlement was named Spanish Peak and a post office was established. New settlers came to the area with the arrival of the Denver & Rio Grande Railroad. The narrow gauge railroad, which crossed La Veta Pass, was the highest U.S. railroad pass at the time. A depot was built one block north of the fort and the town was platted by the railroad in 1876. The fort is now operated by the Huerfano Historical Society.[8] A post office called La Veta has been in operation since 1876.[9] The community was named for a mineral deposit near the original town site, La Veta meaning "mineral vein" in Spanish.[10]

There were 415 households of which 20.2% had children under the age of 18 living with them, 43.1% were married couples living together, 6.7% had a female householder with no husband present, 3.6% had a male householder with no wife present, and 46.5% were non-families. 42.7% of all households were made up of individuals, and 15.2% had someone living alone who was 65 years of age or older. The average household size was 1.93, and the average family size was 2.60.[5]

The median age in the town was 52.8 years. 18.9% of residents were under the age of 18; 2.9% were between the ages of 18 and 24; 16.4% were from 25 to 44; 39.2% were from 45 to 64; and 22.6% were 65 years of age or older. The gender makeup of the town was 46.8% male and 53.2% female.[5]

The median income for a household was $37,457, and the median income for a family was $66,964. Males had a median income of $50,577 versus $26,250 for females. The per capita income for the city was $26,066. About 12.0% of families and 10.9% of the population were below the poverty line, including 19.3% of those under age 18 and none of those age 65 or over.[5]